Finance ministry pitches for ratings upgrade with Fitch

New Delhi, June 7: Pitching for India’s sovereign rating upgrade, the finance ministry on Tuesday impressed upon US-based Fitch that the macro-economic parameters have improved and the government is moving ahead on the fiscal consolidation path.

Finance ministry officials also indicated to the representatives of the rating agency that the government is committed to economic reforms and working for early roll out of the Goods and Services Tax (GST).

“We highlighted the overall economic situation and in all the major sectors the challenges which the economy faces and what is the outlook for the next year,” economic affairs secretary Shaktikanta Das said after a twohour long meeting.

With its pro-growth measures propelling GDP expansion to fastest rate among major economies of the world, the government contended that it has stuck to fiscal and revenue deficit targets and the rating agencies should consider upgrading sovereign credit rating.

Fitch Ratings had in December affirmed India’s ‘BBB-’ rating with a stable outlook and has forecast 8% growth for 2016-17.

‘BBB-’ is the lowest investment grade and just a notch above junk grading.

Chief economic adviser Arvind Subramanian had earlier said the government has pitched for a rating upgrade with Fitch, stating the finance ministry is committed to fiscal consolidation path.

Asked about its views on India, Fitch Ratings Primary analyst Thomas Rookmaaker said: “We are now in the process of our review. It is going to take some time.”

Finance ministry officials also highlighted the steps which have been taken by the government to improve the ease of doing business and promote development of infrastructure sectors, especially road, rail, port and airport.